What to Watch in the Day Ahead - Thursday, Aug. 20

Reuters Staff

4 Min Read

(The Day Ahead is an email and PDF publication that includes the day's major stories and
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Hardware and software maker Hewlett-Packard Co is expected to report third-quarter earnings
slightly above the average analyst estimate. HP has been cutting costs and focusing on
higher-margin sales in the face of a strong dollar and weak enterprise demand for its services.
The company is also in the process of separating its computer and printer businesses from its
faster-growing corporate hardware and service operations.
Salesforce.com Inc, the world's biggest maker of online sales software, is expected to report
second-quarter profit above analysts' expectations. Salesforce has struggled to earn consistent
profits despite strong revenue growth over the past few years, hurt by higher spending on
activities such as hiring. The company reported a profit for the first time in seven quarters in
May. Investors and analysts will look for improvement in the company's margins in the quarter.
The National Association of Realtors releases home sales data for July. Existing home sales are
expected to have slipped to an annual rate of 5.44 million units last month from 5.49 million
units in June. Separately, the Philadelphia Federal Reserve will release its business activity
index for August. Economists expect the index to rise to 7.0 in August from 5.7 in July.
(1000/1400) The Labor Department will also release unemployment data for the previous week. The
number of Americans filing new applications for unemployment benefits is expected to have fallen
by 2,000 to 272,000 in the week. (0830/1230)
Apparel retailer Gap Inc is expected to report second-quarter profit below analysts'
expectations. Lack of trendy merchandise has hurt sales at the company's flagship Gap brand,
forcing it to discount heavily to bring in customers. Shipment delays due to disruptions at West
Coast ports early this year and a strong dollar are also expected to hurt Gap's results.
Investors will look for comments on recovery at the Gap brand and the company's performance so
far in the third quarter.
Canadian wholesale trade is expected to have risen 1 percent in June. Sales fell 1 percent in
May due to weakness in the motor vehicle and parts category.(0830/1230)
Mexico's statistics institute will release gross domestic product data for the second quarter.
The country's central bank has said it expects quarter-on-quarter growth of 0.4 percent,
slackening from the first quarter after weaker-than-expected exports and a slump in domestic oil
output. Meanwhile, data will show how economic activity was in June, after it slowed to a
nine-month low in May. (0900/1300) Also, Brazil's unemployment rate is expected to have surged
for the seventh straight month. The jobless rate is expected to have increased to 7.05 percent
in July from 6.90 the previous month.
LIVECHAT: FX Corner - Kathleen Brooks, Analyst, Forex.Com
Kathleen Brooks, analyst at Forex.com, joins us at (0500/0900) to share her outlook for major
currencies once markets pick up again in September. Are any poised to break out of their ranges?
Otherwise, which crosses offer the best opportunities to take a view? To join the forum, click
here: bit.ly/1kTxdKD
LIVECHAT: Trading Canada - Gauging energy prices with Colin Cieszynski
The glut in oil, fueled by Canada's booming shale business, has big implications for the
Canadian economy. Join Colin Cieszynski, chief market strategist at CMC Markets, for a
discussion on how energy prices are affecting Canada and other resource-focused economies at
(1030/1430). To join the discussion, click here: bit.ly/1kTxdKD
(All analysts' estimates are according to Thomson Reuters StarMine, unless mentioned otherwise)
(Compiled by Hardik Vyas in Bengaluru; Editing by Kirti Pandey)